New Revenue Feature Editorial

How Much Data is Enough? Creating the Balance Between Privacy and Personalization

By Susan J. Campbell, TMCnet Contributing Editor

Interactive text- or multimedia-based (SMS/MMS) dialogue messages are increasingly the first place the younger generation looks for communication and information. As a result, advertisers are leveraging this truth to reach customers with targeted ads, but how much personalization can you achieve while still protecting privacy?

To gauge just how sensitive this audience is to privacy issues in relation to personalization, Alcatel-Lucent (News - Alert) Market Advantage conducted end-user research into this space. The company discovered that as long as privacy was protected, this platform offered significant promise. 

The great majority of respondents, 81 percent, reported that it is important for companies to obtain permission before sending ad-supported messages. Another 76 percent found it important for these ads to be based on their interest and preferences. Overall, more than half of young subscribers would take advantage of a mobile advertising SMS/MMS dialogue service.

So, just how much information can an advertiser ask an individual in order to build these personalized messages? Findings from this study suggest 76 percent would be willing to answer three or more questions to provide a foundation for the personally relevant ads and 80 percent find it acceptable to update their preferences at least once a month, indicating these consumers want dynamic data.

Even more promising for advertisers is the reality that if permission is sought and ads are delivered according to stated user preferences, nearly two-thirds of young consumers reported they would be happy to receive at least two ads per say from a single brand.

With this level of acceptance, privacy is still the primary issue in mobile advertising, followed closely by the ease of starting and stopping ads. Research data suggests that privacy concerns that have inhibited mobile advertising in the past can easily be overcome in most situations by providing permission controls and the ability to delete a user's profile.

Once mobile advertisers understand what consumers are willing to accept in terms of ads received, it is also important to know what consumers are willing to share. According to this research, respondents are willing to share their age, gender, country and interests and will share at least some information about income level and expected timing of purchases.

One key here for mobile advertisers is to remember what is important to the customer first and foremost - their privacy. While this research showed that protecting privacy will keep them loyal to a carrier, a failure to do so will send them running to another provider and blocking offending mobile advertisers. Finding the right balance is achievable, even if a little dance is necessary first.


Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan's articles, please visit her columnist page.

Edited by Erin Harrison